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Jun 30, 2022

Groupon Q2 2022 Earnings Report

Groupon's Q2 2022 results were announced, revealing a net loss but highlighting cost reduction plans and reiterated financial targets.

Key Takeaways

Groupon reported a global revenue of $153.2 million and a net loss of $90.3 million for Q2 2022. The company is implementing a cost reduction plan targeting $150 million in annual savings and is reiterating its 2023 financial targets, including a minimum of $100 million in free cash flow and an Adjusted EBITDA margin of 15-20%.

Global revenue reached $153.2 million.

Net loss amounted to $90.3 million.

Adjusted EBITDA was $5.7 million.

Company plans to lower annual expenses by $150 million and is executing a turnaround strategy.

Total Revenue
$153M
Previous year: $266M
-42.4%
EPS
-$0.34
Previous year: $0.33
-203.0%
Gross Profit
$134M
Previous year: $194M
-30.9%
Cash and Equivalents
$316M
Previous year: $565M
-44.1%
Free Cash Flow
-$39.3M
Previous year: -$46.8M
-15.9%
Total Assets
$916M
Previous year: $1.11B
-17.3%

Groupon

Groupon

Groupon Revenue by Geographic Location

Forward Guidance

Groupon has withdrawn its full year 2022 revenue and Adjusted EBITDA guidance due to the ongoing execution of its turnaround strategy and an uncertain macroeconomic environment. The company is reiterating its targets for 2023.

Positive Outlook

  • Targeting $100 million in annual free cash flow in 2023.
  • Targeting 15-20% Adjusted EBITDA margin in full year 2023.
  • Creating a business model that should position the company to generate positive free cash flow every quarter, starting in the fourth quarter of 2022.

Challenges Ahead

  • Uncertain macroeconomic environment.
  • Withdrawn full year 2022 revenue guidance.
  • Withdrawn Adjusted EBITDA guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income